Jennifer Hyman, cofounder and chief executive officer of Rent the Runway Inc. — and something of a godmother to fashion rental — is leaving the corner office.
Hyman is stepping down as CEO, president and as a board member of the 17-year-old company as of Friday. She will stay on as an adviser through January.
Teri Bariquit, a Rent the Runway board member and former Nordstrom merchandising chief, is stepping in as interim CEO and president while the board searches for a permanent successor.
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“Building Rent the Runway has been one of the greatest privileges of my life,” Hyman said in a statement. “What has made it meaningful was never just what we built — it was the people who built it with me, the partners who trusted us, and the customers who let us be part of the moments that mattered most. Rent the Runway is stronger today than it has ever been, and that is exactly why this is the right moment for me to step down so Rent the Runway can write its next chapter.”
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Investors seemed uncertain about that next chapter and traded shares of the company down 11 percent to $3.95 in midday trading on Wall Street, leaving the firm with a market capitalization of $133 million.
When the company went public in the heady days of 2021’s mini dot-com rush, it was valued at more than $1.2 billion. But like many other other digital players, that valuation didn’t hold as IRL retailing bounced back after the pandemic.
Hyman’s departure follows a series of transactions that recapitalized the business last year, converting some of lender Aranda Principal Strategies’ holdings into equity investors, helping the company take roughly $200 million in debt off the balance sheet.
Aranda, Peter Comisar’s Story3 and Nexus Capital Management also pumped $20 million into the business, which ended the year with debt of $120 million on its books and a new life.
When the recapitalization plan was revealed in August, Comisar said “public investors dramatically underappreciate the value, power and potential of this platform that has been built and perfected on the back of extraordinary financial and human capital investment. The consumer is stretched, and subscription rental opens the door to weekly fashion newness at a low cost and with ultimate convenience.”
On Wednesday the former Goldman Sachs partner, who is managing partner at Story3, doubled down and said his company saw “significant tailwinds for the business from ‘re-dressing’ demand and sizing flexibility, the continued expansion of rental as a service, and the company’s ability to deepen relationships with both customers and brand partners.”
As the company evolved from buzzy disruptor to breakthrough success story to a business that never realized its earlier potential, Rent the Runway wracked up more than $1.1 billion in losses.
But last year, it took a stand and plowed more money than ever into inventory and found some traction with its users.
Revenues increased 7.7 percent to $329.8 million in 2025 while the average number of active subscribers rose 8.3 percent to 143,558. Net earnings tallied $22.6 million — the company’s first annual profit.
Rent the Runway reaffirmed the 2026 guidance it gave in April, calling for double digit revenue growth and an adjusted earnings before interest, taxes, depreciation and amortization margin of between 4 and 7 percent.
For now, getting there is the responsibility of Bariquit, the interim CEO.
“Rent the Runway is a business that has fundamentally reshaped how our customers think about, access and experience fashion,” Bariquit said. “The company is in its strongest financial position in years, with clear momentum across key initiatives, including our online marketplace, advertising and media platform and B2B services.”
A Rent the Runway spokesperson was not immediately available for additional comment.